Groundbreaking Sharia-compliant reinsurance initiative launched to advance climate resilience and inclusive finance in ARC member states.
AlHuda CIBE has successfully facilitated the ARC to establish WAQF ReTakaful Facility, a groundbreaking Sharia-compliant, non-profit mutual structure established by the African Risk Capacity (ARC) Group. The facility was officially launched during a special launching ceremony held in Dubai, UAE, where key stakeholders and industry leaders gathered to mark a new milestone in Africa’s journey toward faith-based climate risk protection.
The launching ceremony was graced by Mr. Yusuf Bodiat, Dr. Hassan Bashir, and Dr. Timothy Nielander, who formally announced the establishment of the ARC WAQF ReTakaful Facility — a first-of-its-kind initiative designed to provide concessional ReTakaful (Islamic reinsurance) capacity to Takaful operators and insurers in ARC member countries. This innovative model aims to bridge the reinsurance gap for underserved and vulnerable markets while promoting financial inclusion and climate resilience through cooperative, Sharia-compliant mechanisms.
The ARC WAQF ReTakaful Facility will operate as a mutual, non-profit platform, pooling risks across participating countries to offer affordable, sustainable, and ethical reinsurance coverage. By focusing on agricultural and climate-related risks — areas often underserved by conventional insurance — the facility will help strengthen the resilience of communities most affected by natural disasters and extreme weather events.
This landmark announcement took place as part of the 7th Global Takaful and ReTakaful Forum, organized by AlHuda CIBE from October 21–24, 2025, in Dubai, UAE. The Forum brought together leading professionals, regulators, scholars, and institutions from around the world to discuss advancements in Islamic insurance, climate risk financing, and inclusive financial systems. The event provided an ideal platform for ARC to unveil this pioneering initiative, reflecting AlHuda CIBE’s continued contribution to the global development of Islamic insurance and ReTakaful ecosystems.
Speaking at the occasion, Mr. Muhammad Zubair, CEO of AlHuda CIBE, emphasized the significance of this achievement: “The ARC WAQF ReTakaful Facility is a major step toward bridging the protection gap in Africa through Sharia-compliant and socially responsible frameworks. By supporting ARC in this initiative, AlHuda CIBE continues its mission to promote financial inclusion, resilience, and sustainability through Islamic cooperative principles.”
The ARC WAQF ReTakaful Facility, developed with AlHuda CIBE’s support, is expected to enhance the reach of Islamic risk-sharing solutions in Africa and complement ARC’s broader strategy of building resilience among its member states. Both organizations plan to scale the facility, subject to regulatory approvals, and collaborate on capacity-building programs for African Takaful operators and policymakers.
About the African Risk Capacity (ARC) Group
The African Risk Capacity (ARC) Group is a Specialized Agency of the African Union established to help African governments plan, prepare, and respond to extreme weather events and natural disasters. Through innovative disaster risk financing and risk pooling, ARC provides African nations with rapid, predictable access to funds when disasters strike — protecting the livelihoods and food security of vulnerable populations. ARC’s model enhances resilience, reduces reliance on external aid, and supports Africa’s broader climate adaptation and development goals.
About AlHuda CIBE:
AlHuda Center of Islamic Banking and Economics (CIBE) is a well-recognized name in the Islamic banking and finance industry for research and providing state-of-the-art Advisory Consultancy and Education through various well-recognized modes, Islamic Financial Product Development, Shariah Advisory, Training Workshops, and Islamic Microfinance and Takaful Consultancies, etc., side by side through our distinguished, generally acceptable and known Publications in Islamic Banking and Finance.
We are dedicated to serving the community as a unique institution for advisory and capacity building for the last twenty years. The prime goal has always been to remain stick to the commitments of providing services not only in UAE and Pakistan but all over the world. We have so far served in more than 104 countries for the development of the Islamic Banking and Finance industry. For further details about AlHuda CIBE, please visit: https://www.alhudacibe.com/
